Handling a Past Annual Income Lower Than Your HSP Point Calculation Estimate in Japan#

When applying for or renewing a Highly Skilled Professional (HSP) visa in Japan, your annual income is a critical factor that significantly impacts your point calculation. The points are calculated based on your “prospective annual income for the next year.” However, to verify the credibility of this amount, you are required to submit official documents, such as a tax certificate, which show your income from the previous year. A common issue arises when your past actual income is considerably lower than the prospective income you are claiming, often due to a recent job change or a significant raise. This article provides an objective guide on how to handle this situation and its potential impact on the immigration review process.

How Annual Income is Evaluated in the HSP Point System#

In principle, the evaluation of annual income for the Highly-Skilled Professional point-based system is based on the “amount of remuneration the applicant is expected to receive over the next year.” This figure is typically calculated from the monthly salary and expected bonuses stated in your employment contract or offer letter.

However, the Immigration Services Agency of Japan (ISA) reviews applications to determine whether this prospective income is credible and reliable. To do this, they refer to objective evidence like the Residence Tax Certificate (住民税の課税証明書, Juminzei no Kazei Shomeisho) or Tax Payment Certificate (納税証明書, Nozei Shomeisho). These documents show your income from the past fiscal year, allowing officials to check for significant discrepancies between your past earnings and your claimed future income.

The ISA places great emphasis on the “stability” and “continuity” of your remuneration. Therefore, if your prospective income is substantially higher than your past実績, you will be expected to provide a rational explanation for the increase.

Common Scenarios Where Past Income is Lower#

Discrepancies between past and prospective annual income often occur in the following situations:

Applying Shortly After Changing Jobs If you have moved to a new company with better compensation, your new salary may be much higher than your previous one. In this case, the tax certificate you submit will be based on your income from your former employer, creating a significant gap with the prospective income listed in your new employment contract.
Applying After a Substantial Raise or Promotion A similar situation occurs if you have recently been promoted or received a significant salary increase at your current company. The tax certificate, issued before the raise took effect, will not reflect this new income level, leading to a discrepancy.
Jobs with High Proportions of Incentive-Based Pay For roles such as sales, where commissions or performance-based bonuses make up a large portion of the total income, earnings can fluctuate significantly year to year. You might be projecting a high income for the current year due to excellent performance, while your income in previous years was more modest.

Impact on the a-pplication and How to Respond#

Having a past income lower than your prospective income does not automatically lead to the rejection of your application. The most crucial step is to clearly explain, with objective supporting documents, that the increase in your salary is legitimate and well-founded.

1. Prepare and Submit a Letter of Explanation#

The most effective strategy is to voluntarily prepare and submit a detailed “Letter of Explanation” (理由説明書, Riyū Setsumeisho). This letter should logically and specifically outline the following points:

The Circumstances of the Income Increase: Describe the facts chronologically. For example: “On [Date], I transitioned from Company A to Company B. As a result of my specialized skills being highly valued, my annual salary increased from JPY X million to JPY Y million.” or “Following my promotion on [Date], my base salary increased by JPY Z in accordance with the company’s salary regulations.”
Reference to Objective Evidence: Clearly state that you have attached supporting documents to corroborate your explanation, making it easy for the reviewing officer to connect the dots. For instance, add a sentence like, “For details, please refer to the attached Notice of Employment Conditions (Document 1) and the official letter of promotion (Document 2).”
Assert Stability and Continuity: It is also beneficial to add a supplementary explanation that this higher remuneration is not a one-time event but is expected to be stable and continuous, perhaps by referencing your company’s stability or the terms of your permanent employment contract.

2. Gather Supporting Documents#

To substantiate the claims made in your letter of explanation, attaching the following documents is highly effective:

Employment Contract or Notice of Employment Conditions (労働条件通知書): The latest version that clearly states your new salary, bonus structure, etc.
Official Letter of Promotion (辞令): An official document from your company certifying your promotion.
Company Salary Regulations or Pay Scale (給与規程): Internal documents that show the company’s compensation structure, providing a basis for your raise.
Recent Payslips (for the last few months): These serve as proof that you are actually receiving the new, higher salary.
Company Financial Reports (e.g., Shikiho): If you are citing strong company performance as a reason for a raise or bonus, objective evidence of this performance is useful.

3. Consider the Timing of Your a-pplication#

If your current status of residence has sufficient time remaining, adjusting the timing of your application can be a viable option. For example, waiting until you have accumulated a few months of payslips at your new salary, or until the new Residence Tax Certificate reflecting your higher income is issued (typically around June each year), can significantly strengthen the credibility of your prospective income. However, you must be careful not to let your current status of residence expire.

Conclusion#

In the process of applying for a Highly Skilled Professional visa, it is not uncommon for your past annual income to be lower than your prospective income, especially during periods of career advancement. To avoid raising doubts during the review, it is essential to proactively explain the reasons for the income increase. By avoiding speculation and ambiguous language, and instead providing a clear explanation supported by objective evidence, you can address any concerns about income discrepancies and facilitate a smoother, more successful application process.